AptarGroup, Inc., a manufacturer of cosmetics and perfume dispensers, has acquired Hyderabad-based TKH Plastics Pvt Ltd for $18 million (Rs 89 crore). New York Stock Exchange-listed AptarGroup will pay approximately $17 million in cash and $1 million in assumed debt as a part of the transaction.
TKH Plastics is in the business of injection moulded dispensing closures, with clients in Indian personal care, food, and beverage markets. The company has also been a licensee of AptarGroup’s dispensing closure products since 2006. TKH had annual revenues of approximately $8 million (Rs 39.6 crore) in the most recent fiscal year, an AptarGroup statement said.
In addition, AptarGroup’s new pharmaceutical device facility in Mumbai is nearing completion and is expected to be fully operational in the beginning of 2012.
AptarGroup completed its strongest year in 2010 with sales increasing 13 per cent to $2.1 billion while operating income went up to a record $268 million, up 35 per cent from a year ago. Europe accounts for 57 per cent of the sales, followed by the USA and Latin America. However, Asia accounted for only 4 per cent of the AptarGroup’s revenues in 2010 at $90 million.
AptarGroup’s key customers include Johnson & Johnson, P&G, Unilever, Merck, Henkel, Revlon, Cipla, Reckitt Benckiser, Kraft and LVMH, among others.
“These steps are part of our strategy to expand our footprint in the region. We recognise that India is a significant and growing market. The acquisition allows us to serve our personal care, food and beverage customers even better and the clean-room facility will enable us to provide locally produced delivery devices to our pharmaceutical customers,” said Peter Pfeiffer, president and CEO of the AptarGroup.